Unlike North America, where presence of all top world airlines is much stronger, travelers to South America have little and limited options to travel with high ranked carriers. In recent times, travel and tourism in South America has increased enormously. Holiday making in Brazil, Argentina, Colombia and Venezuela are gaining more popularity in the West for being cheap and affordable. Another prospective is that there is a lot of business travel going on between the South and North Americas and Europe. Hence, the need for a reliable, bigger and qualitative airline is emminent.
There is, however, an announcement made earlier in August this year that Air LAN and air TAM will merge, giving birth to “La Tam Airlines”. This merger seems quite similar to that between British Airways (UK) and Iberia Airline (Spanish Airline) or Avianca (Colombia) and Taca (Central America) as both airlines plan on keeping their original brands separate. ,.
TAM is a prominent Brazilian airline that is famed for offering cheap flights all over Brazil including flights to Rio de Jenaro, Sao Paulo, Brassila and other cities. Also, TAM is a member of the Star Alliance group of airlines which also includes BMI, Lufthansa, SAS and Air China. While LAN is equally popular airline in Chile and member of the Oneworld airline alliance, which includes Iberia, British Airways, Qantas and JAL. Both the countries are strong economies in South America. Brazilian airline TAM has announced plans to complete a merger with LAN soon. The new TAM/LAN merger is likely to create the largest carrier in Latin America.
It is planned that this merger will operate services to 115 destinations in 23 countries and will have a backing of 40,000 employs. The new carrier is to be named the “Latam Airlines Group” and is likely to choose either STAR or OneWorld as part of the merger rationalization.